New-York tribune., 1887-12-12
JESSE SELIGMAN ON THE SURPLUS
CONSERVATISM STRONGLY URGED

PRACTICAL MEASURES ADVISABLE BEFORE RADICAL
TARIFF CHANGES.
The question of tho disposition Of tho Treasury
plus which has been less discussed In financial
circles for time engages the attention Of bankers
all the In view of the radical frcetrade solution
presented by President Cleveland There Is strong
feeling In Wall Street that there conditions in the
money market which require consideration tending to
conservatism paramount to any partisan advantage
to be obtained by discussions the mcnacing challenge
OF the President TO settle the economic phases OF the
tariff question before other work is done by Congress
Talking with -TBUNE reporter Jesse Scligman SAID:
al agree with the Presidents message to the extent
only that the matter OF providing for relief from
congestion Of the Treasury Is all immediate and pressing
question But II presents phases which ought not to
wait upon any ella orate scheme that Is bound To DC
the subject Of scrious controversy. think that Con
gress without delay should empower the Secretary of
the Treasury to purchase, say from S2o.ooo,ooo to
$50, 100000 Government bonds. thus vent 2 dis
turbancc the business community all the United
That surely would not he of disadvantage from
partisan standpoint and 1t would assure relief from
any monetary strngcncy. Having accomplished that.
think that a next step Congress should authorize
the National banks to Issue notes at 1CO cents on The
dollar of the bonds hypOthccaed with the Government
instead Of only 90 cents at present Is allowed by The
law. This action would al give an additional cir
cuation of between S3O,000,COO and S40,0oOOOO to
the country lessening the danger of monetary dis
turbance to a decisive extent. This would not en-
danger the security OF the National bank notes as the
Government bonds command handsome premium and
the notehOlder has an additional security IN
that the stockholders the National banks douby
res ponsbe of the stock that they hold
The safety of the accepor OF the National bank note
would be as far beyond question as II now is.
"When these steps have boon taken, which wonld
insure business against the possible dangers OF excessive
Treasury accumulations Congress cond with safety
takc up consideration of dsposng of the large rev
received from internal taxes and the customs ii
sugar and tobacco were taken up means could DO
found for absorbing the surplus OF revenues complained
of Abolishlng the internal revenue tax on tobacco
would cut off some Sos 600 and ii the dnty on sugar
were removed S5OO0O,O00 receipts would be taken
away from the Treasury. ON these articles alone
an enormous curtailment of revenues wonld be
effected. Legislation of this kind would reduce both
tariff and internal without injury to the indus
tries of the country. In making partial reductions Oh
the general tariff the remedy for the Treasury surplus
would not be found, because the importatons would
probably be larger and the revenues from duties be
greater in proportion than they are to-day.
"Another point that should not be lost sight Of"
continued Mr.. segman, in ihe consideration OF the
behind other countries in its internal improvements
With greater wealth. greater promise OF deveiop met
and greater needs laggars In the facilities for
handling and stimulating commerce. 'nly lOOh al our
harbors. Here at New-York large steamer can
come to us without waiting for the tide to ioat 1t In
over the bar. This condition inerfeIes with commerce
and endangers II as we'll Our Notifications also are
neglected and a moderate reform In this dIfec-
dcionsy and carefully handled expenditures in the
directions have mentioned woild prove OF perinaneh.
their inception start the circulation of money and con
tribute the prosperity Of the masses OF people at
home While these conservative measures we're oe,r oeng
any revenue plan to prevent excessive treasury ac-
cumuations in beiuturc and we all know that no rad
cal change shoad be made In revenue raising "thou'
careful deliberatiOn"